10-KPeriod: FY2025

ATI INC Annual Report, Year Ended Dec 28, 2025

Filed February 20, 2026For Securities:ATI

Summary

ATI Inc. reported strong performance in fiscal year 2025, with a 5% increase in sales to $4.6 billion, driven primarily by robust demand in its core Aerospace & Defense (A&D) markets. The company's High Performance Materials & Components (HPMC) segment, which derives 92% of its revenue from A&D, saw a 7% sales increase, largely due to a 21% rise in commercial jet engine sales. The Advanced Alloys & Solutions (AA&S) segment also contributed with a 3% sales increase, supported by a 15% rise in A&D sales. ATI's Adjusted EBITDA grew 18% year-over-year to $859.3 million, with margins improving to 18.7% of sales, reflecting favorable sales mix and pricing. The company also generated significant operating cash flow of $614.3 million and continued its disciplined capital allocation, including $470 million in share repurchases. Despite overall growth, some end markets such as Medical and Specialty Energy experienced softness. The company's backlog remains strong at $3.7 billion, with approximately 70% expected to be fulfilled in fiscal year 2026. ATI continues to focus on operational improvements and strategic capital allocation, including deleveraging its balance sheet. The company's financial position appears solid, with total liquidity of $1.1 billion at year-end, and it has extended its ABL credit facility through June 2030.

Financial Highlights

51 data points
Beta

Revenue

$4.59B

22.0% Gross Margin

Net Income

$404.30M

8.8% Net Margin

EPS (Diluted)

$2.85

Total Assets

$5.10B

Cash & Equivalents

$416.70M

Free Cash Flow

$614.30M

Financial Statements
Beta
Revenue$4.59B
Cost of Revenue$3.58B
Gross Profit$1.01B
R&D Expenses$21.30M
SG&A Expenses$365.10M
Operating Income$640.90M
Interest Expense$110.70M
Net Income$404.30M
EPS (Basic)$2.92
EPS (Diluted)$2.85
Shares Outstanding (Basic)138.60M
Shares Outstanding (Diluted)141.80M

Key Highlights

  • 1Fiscal year 2025 sales increased 5% to $4.6 billion, the highest since 2012.
  • 2Aerospace & Defense sales grew 14%, representing 68% of total sales, driven by strong commercial jet engine and defense demand.
  • 3Adjusted EBITDA increased 18% to $859.3 million, with margins improving by 200 basis points to 18.7% of sales.
  • 4Operating cash flow improved significantly, increasing by almost 51% to $614.3 million.
  • 5The company repurchased $470 million of its stock in fiscal year 2025 under its share repurchase program.
  • 6The HPMC segment saw strong growth, with Segment EBITDA up 25% to $575.8 million (23.6% of sales).
  • 7The AA&S segment's Segment EBITDA increased 9% to $349.0 million (16.3% of sales), benefiting from favorable pricing and sales mix.

Frequently Asked Questions

ATI's primary market is Aerospace & Defense (A&D), which accounted for 68% of total sales in fiscal year 2025. Sales to this market grew 14% year-over-year, driven by demand for commercial jet engines and defense applications, indicating a strong performance in its key sector.

ATI experienced improved financial performance in fiscal year 2025. Sales increased by 5% to $4.6 billion, and Adjusted EBITDA grew by 18% to $859.3 million, with profit margins expanding. The company also saw a significant increase in operating cash flow, up almost 51% to $614.3 million, demonstrating enhanced operational efficiency and profitability.

ATI maintains a healthy backlog of $3.7 billion as of December 28, 2025, with approximately 70% expected to be fulfilled in fiscal year 2026. The company anticipates continued growth, particularly in the aerospace sector, with new engine designs utilizing advanced materials expected to drive demand for its products.

ATI is focused on disciplined capital allocation. In fiscal year 2025, the company repaid $150 million of debentures and repurchased $470 million of its stock. It also has $120 million remaining on its share repurchase authorization and recently increased its total authorization by $500 million, signaling a commitment to returning value to shareholders while managing its debt.